{"id":4530,"date":"2009-11-02T11:31:19","date_gmt":"2009-11-02T16:31:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4530"},"modified":"2009-11-02T11:31:19","modified_gmt":"2009-11-02T16:31:19","slug":"eurusd-hovers-around-our-1st-tier-uptrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/02\/eurusd-hovers-around-our-1st-tier-uptrend-line\/","title":{"rendered":"EUR\/USD Hovers Around Our 1st Tier Uptrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD\u2019s trading right around where we left it on Friday.\u00a0 The currency pair found strength once again just around our 2nd uptrend line, setting a slightly higher low than Thursday.\u00a0 However, downward forces remain since last week\u2019s global econ data ended on a sour note.\u00a0 German Retail Sales printed 12 basis points lower than analyst expectations, negating Thursday\u2019s positive Employment Change number.\u00a0 Furthermore, investors found that U.S. prices and personal spending continue to decline while Unemployment Claims remain at historically high levels.\u00a0 Therefore, unemployment and consumption are lagging behind the improvement in corporate earnings.\u00a0 Investors should keep in mind that much of the rebound in earnings has been driven by a combination of deep cost cutting measures and global economic stimulus measures.\u00a0 Hence, economists are becoming increasingly worried that any premature removal of stimulus and tightening of liquidity may jeapordize the global recovery taking root, resulting in additional cost cutting and even higher unemployment.\u00a0 As a result, investor uncertainty is rising, as seen by the large pop in the VIX, and are divesting from risk and heading towards the Dollar.<\/p>\n

The EU will be relatively quiet data wise until Thursday\u2019s monetary policy decision.\u00a0 The ECB was complaining about the strength of the Dollar recently, and the Euro has since declined about 300 basis points.\u00a0 As a result, the ECB may be less inclined to take any liquidity measures at this week\u2019s meeting.\u00a0 Although, we will have to see how the Fed acts on Wednesday first.\u00a0 Therefore, between now and then activity in the EUR\/USD will likely focus on U.S. econ data and Q3 earnings reports.\u00a0 Hence, investors should keep an eye on the S&P futures and their interaction with present technicals along with October lows should they be tested.<\/p>\n

Technically speaking, last week\u2019s sharp movement below the psychological 1.50 level is a discouraging sign for bulls.\u00a0 However, there remain several uptrend lines we can form, meaning the EUR\/USD has a few technical cushions to rely upon before investors can safely cry bear.\u00a0 The EUR\/USD has three uptrend lines to fall back on along with the psychological 1.45 level should the currency pair take a turn for the worst.\u00a0 Our 2nd tier uptrend line seems to be a key technical since it runs through October lows and likely represents the support separating the EUR\/USD from a retracement towards 1.45.\u00a0 As for the topside, the EUR\/USD now has multiple uptrend lines bearing down on price and the psychological 1.50 level becomes a technical barrier once again.\u00a0 Overall, although the uptrend remains intact, investors should tread carefully since U.S. equities are facing headwinds.<\/p>\n

Present Price: 1.4761<\/p>\n

Resistances: 1.4806, 1.4828, 1.4853, 1.4878, 1.4907, 1.4933<\/p>\n

Supports: 1.4760, 1.4723, 1.4686, 1.4670, 1.4638, 1.4612<\/p>\n

Psychological: 1.50, 1.45<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> <\/span>provided by <\/span>Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> <\/span>FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> <\/span>There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD\u2019s trading right around where we left it on Friday.\u00a0 The currency pair found strength once again just around our 2nd uptrend line, setting a slightly higher low than Thursday.\u00a0 However, downward forces remain since last week\u2019s global econ data ended on a sour note.\u00a0 German Retail Sales printed 12 … <\/p>\n

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